The move made by the Venezuelan Government may lash income of Venezuela-based Spanish companies and undermine the dividends waiting for repatriation

The devaluation announced by the Venezuelan authorities last Friday will have a particularly significant impact on the accounts of Spanish bank BBVA and telephone company Telefónica, whose revenues in Venezuela amount to some 6-8 percent of their total revenues. In the meantime, the impact in other Spanish companies based in Venezuela will be lower, according to estimates issued by some analysts in Madrid.

The new foreign exchange rate will enter into force next February 13, from VEB 4.30 to VEB 6.30 per US dollar.

Brokerage firm Banesto Bolsa has stressed that BBVA yielded eight percent of the net margin in Venezuela in 2012, and its book value in Venezuela amounted to USD 1.03 billion (less than two percent of the total).

Regarding Telefónica, in addition to the impact on income (USD 3.09 billion in the first nine months, that is, 4.95 percent of total income), the telephone carrier holds USD 2.6 billion in cash and dividends that are waiting for repatriation, Banesto Bolsa explained.

Translated by Jhean Cabrera

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Hundreds of thousands of demonstrators took to the streets of Brazil on March 13 to demand the ouster of embattled President Dilma Rousseff, carrying banners expressing anger at bribery scandals and economic woes. A banner read "We don't want a new Venezuela in Brazil."